Equitium’s target space for acquisitions is not a particular industry but a particular market segment: the affluent consumer. We aim to acquire premium heritage brands offering products and services fulfilling the needs and desires of the world’s affluent and refined consumers.
According to Bain & Company, the size of the global luxury market was about €1,081 billion (~$1,200 billion) in 2016. Initially, Equitium is seeking to acquire companies operating in the personal luxury goods space which accounted for 23% or €249 billion (~$280 billion) of the total luxury market.* The personal luxury goods segment is comprised of apparel, accessories, watches and jewelry, perfume & cosmetics, and several smaller categories.
* “Worldwide Luxury Market Monitor, 15th Edition – 2016” by Bain & Company
Our objective is to acquire small and large, successful and underperforming companies to build a balanced portfolio in terms of risk and return on investment. A strong brand heritage is a very important aspect of our acquisition strategy. Heritage supports powerful marketing and brand identification because it allows storytelling and creates an emotional connection with customers. Heritage is a reason to believe in a brand and validates a price premium.
For us, premium products and services are those that exhibit some or all of the following characteristics: